---
kind: "section"
citation: "42 C.F.R. § 405.2436"
title: "42"
number: "405.2436"
heading: "Termination of agreement."
url: "https://uscodex.org/cfr/42/405.2436"
---

# §405.2436. Termination of agreement.

- (a) **Termination by FQHC.** The FQHC may terminate its agreement by—
  - (1) Filing with CMS a written notice stating its intention to terminate the agreement; and
  - (2) **Notifying CMS of the date on which the FQHC requests that the termination take effect.**
- (b) **Effective date.**
  - (1) Upon receiving a FQHC's notice of intention to terminate the agreement, CMS will set a date upon which the termination takes effect. This effective date may be—
    - (i) The date proposed by the FQHC in its notice of intention to terminate, if that date is acceptable to CMS; or
    - (ii) Except as specified in [paragraph (2)](#b-2) of this section, a date set by CMS, which is no later than 6 months after the date CMS receives the FQHC's notice of intention to terminate.
  - (2) The effective date of termination may be less than 6 months following CMS's receipt of the FQHC's notice of intention to terminate if CMS determines that termination on such a date would not—
    - (i) Unduly disrupt the furnishing of FQHC services to the community; or
    - (ii) **Otherwise interfere with the effective and efficient administration of the Medicare program.**
  - (3) **The termination is effective at the end of the last day of business as a FQHC.**
- (c) **Termination by CMS.**
  - (1) CMS may terminate an agreement with a FQHC if it finds that the FQHC—
    - (i) No longer meets the requirements specified in this subpart; or
    - (ii) **Is not in substantial compliance with—**
      - (A) The provisions of the agreement; or
      - (B) The requirements of this subpart, any other applicable regulations of this part, or any applicable provisions of title XVIII of the Act.
  - (2) **Notice by CMS.** CMS will notify the FQHC in writing of its intention to terminate an agreement at least 15 days before the effective date stated in the written notice.
  - (3) **Appeal.** A FQHC may appeal CMS's decision to terminate the agreement in accordance with [part 498](/cfr/42/part498.md) of this chapter.
- (d) **Effect of termination.** When a FQHC's agreement is terminated whether by the FQHC or CMS, payment will not be available for FQHC services furnished on or after the effective date of termination.

## Notes

### Amendments

[57 FR 24978, June 12, 1992, as amended at 79 FR 25476, May 2, 2014]

### Source

Source: 57 FR 24978, June 12, 1992, unless otherwise noted.

### Authority

Authority: Secs. 1102 and 1871 of the Social Security Act (42 U.S.C. 1302 and 1395hh).

### Source

Source: 43 FR 8261, Mar. 1, 1978, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 263a, 405(a), 1302, 1320b-12, 1395x, 1395y(a), 1395ff, 1395hh, 1395kk, 1395rr, and 1395ww(k).

### Amendments

[57 FR 24978, June 12, 1992, as amended at 79 FR 25476, May 2, 2014]